During the past week, we’re seeing more gains for Bitcoin. This, in turn, led to gains in altcoins like Litecoin as the general crypto market recovers from large losses.
Bitcoin Up by 13 Percent
Bitcoin is currently quoted at $8,520 dollars per coin, up by $952 dollars since our last update. This is a gain of close to 13 percent, 12.82% to be exact.
This is largely a technical rebound after the large +50% drop that transpired from January 28th to February 6th. During this time bitcoin peaked at $12,161 dollars only to drop to a low of $5,980 only ten days later. The major source of market stress during this time was news that the U.S. government subpoenaed both Bitfinex and Tether.
On the daily charts, BTC/USD technically remains in a downtrend. Before we can call this trend over we need to see a decisive breakout above the $9,475 swing high. Above here the $10,000 round figure should act as resistance but a more important level is $12,161 dollars. A breakout above it could start a new rally.
Below current prices, we find weak support at the previous swing lows of $7,841 and $7,705, followed by the $7,000 and $6,000 round figures. The multi-month low at $5,980 dollars is another notable support, a break of which could intensify the losses. On the weekly charts, BTC is range-bound while the monthly is still keeping the bullish bias.
Litecoin Gains $18 Dollars
Litecoin continues to closely follow big brother bitcoin. The crypto is up by $18 dollars since our last update or 13.14 in percentage terms. We’re currently quoted at $155.50 dollars per coin.
Similarly to BTC/USD, litecoin remains in a downtrend on the dailies. A definite end to it is possible with a breakout above the $173.25 swing high. A new uptrend needs a move above the $196.22 swing high but many may wait for a breakout above the $200 round figure before jumping in.
Weak support below can be found at the $150 round figure, followed by the $140.35 and $136 swing lows. The double bottom near $105.55 dollars will be a major support for LTC. A break of this level could easily lead to a break of the $100 round figure and snowball into large losses below. On the longer-term weekly and monthly charts, LTC/USD is still in rally mode.
Try risk-free bitcoin demo account with FXOpen broker.